Introduction
Are you in the habit of saving money?
You have plenty of resources, still do you think of securing your future? If yes, then there is nothing uncommon. Rather it is the sign of wisdom.
Those who plan for a hassle-free future can think of enjoying life. Similar to saving money even though you have it, buying cancer insurance when you are healthy makes complete sense. Those who do not want to disturb their current savings for the unexpected emergencies will prepare a financial cushion for the future. In short, if you are in perfect health, you can still buy cancer health insurance.
What is a Cancer Insurance Plan?
A cancer insurance plan is a health insurance policy that pays the life insured in lump sum when diagnosed with cancer. A large cover amount can be purchased to protect your savings. The cancer insurance plan is affordable which makes it all the more suitable for you to buy it.
The claim amount received under the cancer insurance policy can be used to settle both the medical and non-medical bills. After acquiring cancer, you may have to keep away from your work that affects the family’s monthly earnings. The illness alone can leave the financial status of the family shaken. This is where the cancer insurance policy helps.
Let us understand it with an example. Suppose Mehul purchased a cancer insurance policy for Rs.10 lakhs. After one year of the policy, Mehul was diagnosed with cancer. Mehul informed the same to the insurance company. The insurer in return disbursed the lump sum claim amount. It enabled Mehul to take the high-quality treatment at the hospital of his choice.
Let us see what are the other benefits of the cancer insurance policy.
Benefits of Cancer Insurance Policy.
Buying a cancer insurance policy has become the need of the hour because the cases of diseases have increased considerably. 1 in 9 Indians are believed to develop cancer in their lifetime. Sources indicate that the risk of cancer in men will be 19% by 2025. These are the Cancer Insurance benefits which can motivate you to buy the insurance cover:
- High Sum Assured Cover: Cancer insurance plan provides an option to get a high sum assured cover. The insurance companies can offer a minimum insurance cover of Rs.5 lakhs and the maximum cover limit is Rs.50 lakhs. With such a high sum assured limit, the life insured can avail the treatment from anywhere.
- Affordable Premium: The cancer insurance policy comes at a cost-effective price. For example, the cancer cover from Aditya Birla Sun Life Insurance for Rs.10 lakhs comes at Rs.120/month. This is an affordable premium which you can easily shell from your pockets. It is worth the expense to be made so that you are financially prepared if a medical emergency arises.
- Covers all stages of cancer: A cancer insurance policy covers all stages of cancer. It gives you a mental peace that you can apply for the claim whatever stage of the cancer is detected in you.
- Payout on diagnosis: A cancer insurance policy gives a convenient format for claim payment. The payouts are released as early as the disease is diagnosed in the patient.
- A health policy is not sufficient: A mediclaim insurance policy is not sufficient as it pays for the cost of hospitalization, pre and post hospitalization expenses. The mediclaim policy pays only after the submission of the claim papers. On the other hand, a cancer insurance policy pays in lump sum as soon as the disease is diagnosed.
- Waiver of Premium: After the cancer is diagnosed, the life insured does not have to bother for the premium. The insurance company allows or gives a chance of waiver of premium. It helps the family save some more money at the time of distress.
- No compromise in the treatment of your choice: With the cancer insurance policy, you do not have to compromise on the treatment of your choice. The lump sum payment allows you to make the best use of claim money to take the necessary treatment.
- Tax Benefit: The cancer health insurance policy will provide you tax deduction under Section 80C of Income Tax Act, 1961.
- If you purchase the policy for yourself, spouse, dependent children (all aged less than 60 years), the deduction allowed will be Rs.25,000/-.
- If you purchased the policy for yourself, spouse, dependent children (all aged above 60 years), the deduction allowed will be Rs.30,000/-.
- If you pay the cancer insurance premium for parents who are less than 60 years, the tax deduction will be Rs.25,000/-.
Who should buy a Cancer Insurance Plan?
Anyone can buy a cancer insurance plan. Cancer is a disease that can affect individuals irrespective of gender, age, occupation, lifestyle, and health condition. The expected figures of cancer cases in India makes it important for everyone to buy the insurance policy.
A report from Indian Council of Medical Research (ICMR) states that there would be approximately 17.3 lakh new cases of cancer and out of these about 8.8 lakhs cancer deaths will be reported by 2020.
Things to consider before buying a Cancer Insurance Plan.
Before buying the cancer insurance plan, these are the things that you must consider:
- Premium Paying Capacity: Check the premium paying capacity whether you can afford the insurance cover or not.
- Solvency Ratio: Find out the solvency ratio of the insurance company you are buying the cover from. The ratio should be 1.5 as indicated by IRDA. The solvency ratio is the capacity of the policyholder to pay the claims.
- Incurred Claim Ratio: Evaluate the Incurred Claim Ratio of the insurance company. Be sure that the ICR is higher as that is favorable.
- Online Policy Process: Keeping in mind the value of time, make sure that the cancer insurance plan must be available online. The online process saves time and it is economical.
- Customer Complaints Incidence: Read about the reviews of the insurance company.If the number of customer complaints incidence is less than the insurer is perfect.
Best Cancer Insurance Plan.
One of the best cancer insurance plans you can purchase is from Aditya Birla Sun Life Insurance. ABSLI Cancer Shield Plan is a low cost plan that covers you financially through different stages of cancer.
- Policy benefits you with lump sum payment. 30% of the payment will be made on diagnosis of an early stage of cancer. The Remaining 70% will be made on the detection of major stages of cancer. If the life insured has a major stage of cancer in the first test, it provides 100% of the sum assured.
- Premium Waiver Benefit: ABSLI Cancer Shield Plan gives you a benefit of premium waiver. If the life insured is diagnosed with cancer, the premium will be waived for 5 years or remaining policy term.
- Income Benefit: On the diagnosis of a major stage of cancer, you can choose to receive 1% as monthly income. The condition has to be specified at the beginning of the policy.
- Grace Period: The policy gives a grace period of 30 days if you fail to renew the policy on time. The benefits will continue during this grace period but after this cover will cease to exist.
Conclusion:
A cancer insurance plan is a protection policy that keeps your savings secured. The insurance policy pays the family a lump sum amount enabling them to handle the medical emergency with care. The cancer insurance policy covers all stages of diseases. But before buying the insurance policy, it is important that you compare the insurance coverage, premium, and other features.
The policy premium is less which makes it a suitable cover to purchase. For more details on cancer insurance plans, read here.
